Across the United States, municipalities are running high deficits due to the long-term effects of the economic downturn. Simultaneously, many local governments are looking to promote energy efficiency and renewable energy (EERE) as a means to lowering utility bills, reducing pollution, and creating green jobs in the process.
Property Assessed Clean Energy (PACE) financing has become a viable solution for municipalities to implement EERE programs. This form of financing allows local governments to raise capital from the public and private sectors. The funds are then loaned to property owners who pay them back over 15 – 20 years, typically through a property tax assessment.
Harvard Business Review named PACE financing as one of the “Breakthrough Ideas for 2010” – for good reasons. EERE projects tend to have relatively short payback periods (generally 2 -5 years). Long-term financing (usually 15 – 20 years) reduces monthly payments; creating a net gain from day one (i.e. the energy savings are greater than the monthly loan payment). This has many benefits for homeowners and local governments.
CarbonSolutions and its partners have developed a turnkey solution to administering PACE programs. Our team of experienced professionals was formed to guide local governments every step of the way – from setting up the programs, to identifying the properties with the highest ROI, to monitoring, tracking, and reporting progress through customizable web-based software solutions.